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Once this has been explained I will give my recommendation as how to take care of the issues plaguing Lawrence Sports.
Working Capital Policy
Cash balance requirements including cash reserves needed for long term opportunities that may arise.
Cash is something that every company must have. Cash can have many different uses within any company. In the case of Lawrence it could help save the company money by not have to use short term financing to help cover Mayo’s short fall in payments. Cash can be used to finance future endeavors for the company such as advertising, securing properties, or for sustaining business in times of need...
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